The purpose of this Section is to promote the public health, safety, and welfare by supporting the development of housing that is affordable to households earning between 80% and 120% of area median income. The intent of this Section is to accommodate moderate income housing (MHO) projects through increases in density, height, and relaxation of certain other zoning limitations for residential developments in which all units are made affordable to households earning between 80% and 120% of area median income; to incentivize the reuse of existing buildings in order to create MHO Projects; to enable the feasibility of MHO projects by allowing flexibility in unit mix and unit size in exchange for greater common area living space; to enable MHO Projects to be permitted by right; and to apply such standards within the MHO area, to support the Housing Element's goals of supporting economic sustainability by creating housing that accommodates an additional segment of the workforce, and achieve greater socioeconomic diversity.
(Added by Ord. No. 2742CCS § 2, adopted April 11, 2023; amended by Ord. No. 2792CCS, 10/8/2024; Ord. No. 2814CCS, 5/27/2025)
Moderate Income Housing Overlay (HMO) Project
means a multiple-unit dwelling project consisting of MHO Dwelling Units subject to the standards and restrictions set forth in this Chapter. A MHO Project may contain up to: (1) 33% of the project's total floor area as market rate dwelling units and/or nonresidential uses that are otherwise permitted in the base zoning district; and (2) no more than 25% of the total number of units as market rate units.
Moderate Income Housing Overlay (MHO)
means an overlay zoning district that sets forth modified development standards within this Chapter for residential developments Citywide, except for parcels within the Single-Unit Residential (R1) zoning district, and in which all units are made affordable to households earning between 80% and 120% of area median income.
Moderate Income Housing Overlay (MHO) Dwelling Unit
means a dwelling unit, as defined by Section 9.52.020.0730, except that for purposes of this Chapter a dwelling unit shall be a minimum of 250 square feet in size, if the dwelling unit is located within a MHO Project for which occupancy is restricted to a MHO Eligible Household.
Moderate Income Housing Overlay (MHO) Eligible Household
means a household whose gross income exceeds the maximum income for an 80% income household and whose gross income does not exceed 120% of the area median income, adjusted for household size, as published and periodically updated by California Department of Housing and Community Development.
(Added by Ord. No. 2742CCS § 2, adopted April 11, 2023; amended by Ord. No. 2792CCS, 10/8/2024; Ord. No. 2814CCS, 5/27/2025)
A. 
The provisions set forth in this Section shall apply to MHO Projects within the MHO.
B. 
A MHO Project shall be permitted by-right if it meets all standards set forth in this chapter in place of the requirements otherwise applicable in the underlying zoning district. Any development not meeting all of the standards set forth in this Chapter shall be subject to the requirements otherwise applicable in the underlying zoning district.
C. 
A MHO Project pursuant to this Section shall not include any alteration or demolition of any of the following types of housing:
1. 
Deed restricted affordable housing;
2. 
Rent-controlled housing or housing subject to any form of price control, including, but not limited to, units subject to the California statewide rent control law and Article XVIII of the Santa Monica Charter, the City's rent control law;
3. 
Housing occupied by a tenant in the last three years; or
4. 
Housing on parcels with an Ellis Act eviction in the last 15 years from date of application submittal.
(Added by Ord. No. 2742CCS § 2, adopted April 11, 2023; amended by Ord. No. 2792CCS, 10/8/2024; Ord. No. 2814CCS, 5/27/2025)
An MHO project shall be processed pursuant to Chapter 9.39, Administrative Approval.
(Added by Ord. No. 2792CCS, 10/8/2024; Ord. No. 2814CCS, 5/27/2025)
MHO dwelling units shall be exempt from Chapter 9.64, Affordable Housing Production Program, except for the following sections:
A. 
Section 9.64.110, Income Eligibility Requirements.
B. 
Section 9.64.130, Deed Restrictions.
(Added by Ord. No. 2742CCS § 2, adopted April 11, 2023; amended by Ord. No. 2792CCS, 10/8/2024; Ord. No. 2814CCS, 5/27/2025)
MHO Projects shall conform to the development standards of the underlying zoning district except as modified by this Section.
A. 
Building Height. Projects shall receive a height increase of up to 33 feet above maximum building height for the underlying zone district.
B. 
Residential Density Bonus. Projects shall be allowed to request up to a 50% density bonus.
C. 
Eligibility for Concessions/Incentives. Projects shall be eligible to request up to four incentives and concessions pursuant to procedures set forth in Sections 9.22.060 and 9.22.080.
D. 
Eligibility for Waiver or Reduction of Development Standards. Projects shall be eligible to request a waiver or reduction of development standards pursuant to procedures set forth in Section 9.22.070 and 9.22.080.
E. 
Open Space.
1. 
Projects shall provide an increase to minimum required outdoor living area in a percentage equivalent to the density bonus requested pursuant to this Section.
2. 
Projects may substitute common outdoor living area in lieu of minimum required private outdoor living area in an equivalent amount.
F. 
Minimum Off-Street Parking. MHO Projects shall not have minimum off-street parking requirements.
G. 
Transportation Demand Management. In addition to those required by Chapter 9.53, Transportation Demand Management, a MHO Project shall include the following transportation demand management measures:
1. 
A transportation allowance equivalent to at least 75% of the cost of a monthly regional transit pass, in accordance with Section 9.53.130(B)(2)(c)(iv).
2. 
Free on-site shared bicycles intended for resident and guest use. This shall be optional if Citywide bikeshare is available within a 2-block radius of the project site.
H. 
Air Quality Assessment Zone. MHO projects within the Air Quality Assessment Zone shall be required to complete a form provided by the Director that prescribes the required design features to reduce exposure to diesel particulate matter (DPM) as a part of the early project design process. Such form shall be submitted at the time of project application and shall be subject to review and approval by the Director prior to project approval.
(Added by Ord. No. 2742CCS § 2, adopted April 11, 2023; amended by Ord. No. 2792CCS, 10/8/2024; Ord. No. 2814CCS, 5/27/2025)